Question

Allocating municipal interest from a 1099-DIV

Forum|Forum|3 years ago
February 18, 2023
1 reply
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When I download a 1099-DIV, I'm asked what state the municipal bond interest came from. How can I allocate a portion of the interest to my state, it doesn't appear to allow me to do that?

M

MonikaK1

At the screen, "Do any of these uncommon situations apply?", you will see two options: one to adjust the interest in situations described when you choose that option, and one to indicate that your state (ME, MD, MA, NH, NJ, or WV) doesn't tax this interest.

The Learn More link for this item states that, If your state isn't listed, leave the special handling box blank and that TurboTax will cover interest when you get to your state return.

See this tax tips article for more information.

If the municipal bond income was instead reported on Form 1099-DIV, enter it in that section of Wages & Income. If you enter exempt-interest dividends in Box 12, a follow up screen will appear asking you to indicate what state the dividends were for, if there is more than one state, or if the state doesn't appear.

See this article for more information on investment bonds.

[Edited 02/18/23| 2:48pm PST]

@Phil18

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